Transmission Investment: All Talk and Little Action

Except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward.

There's plenty of talk about transmission, says Theo Mullen. "But real action on transmission construction is scant," he adds. "Conferences and reports abound. Projects of all sizes are being proposed. But, except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward. The vast majority of larger projects are stalled for lack of financial commitment."¹

Furthermore, the amount of money needed for transmission investment will depend on which categories are considered (). Opinions vary widely on the severity of our transmission problems and the need for additional capital expenditures. Steve Huntoon and Alexandra Metzner suggest we need "a stable regulatory environment" to address the "myth of the transmission deficit."² They believe new transmission needed for reliability purposes should be determined on a regional basis through existing institutions, and that transmission needed to relieve congestion should be built on a competitive basis when that is the most efficient solution to congestion. I, along with my earlier coauthor Brendan Kirby, believe that separating reliability from economic needs is very difficult and that substantial investments for both purposes are required.³ Others believe that serious transmission problems exist but can be addressed in large part with nontransmission solutions, in particular dispersed generation and demand management.⁴